The electronic invoicing obligations are soon coming into force in France, and a lot of rumours and misinformation is spread, making small business owners panic. The article aims to provide some simple and clear information on the topic.
What is an electronic invoice? #
This is a new standard of issuing invoices where data is stored in a special file format readable by various software, rather than a text from (it should also still be available to view as text for end users).
What is the purpose of the system and how will it work? #
The purpose to to fight VAT fraud, especially on B2B transactions. Issuing electronic invoices will only be obligatory (as of this stage of reform) for operations between businesses in France.
Each business that buys from French suppliers will have to designate a platform to receive e-invoices – like a special inbox – where all invoices arrive, can be viewed, accepted or declined (in case of disagreement or error) and paid. One can use several platforms/services to issue electronic invoices, but only one to receive them.
When an invoice is issued by a supplier, it is sent to the client and at the same time to the tax office. Each time a client changes the status, (accepted/declined/paid), the information is transmitted to the supplier and the tax office. This way the VAT tax declaration will be prefilled with the relevant information.
In which cases issuing an electronic invoice will be obligatory? #
For B2B transactions in France. If your business is registered in France, not currently declaring VAT (franchise en base de TVA) and is selling goods or services to VAT registered French businesses, you will have to use the e-invoice as well.
Which operations are not concerned? #
- invoicing clients outside of France
- invoicing/selling to private customers in France
Business owners will have to report these transactions using an e-reporting tool (details on how this will work are upcoming), but do not have to issue e-invoices as such. This will probably look closer to existing VAT declarations, or URSSAF declarations for micro entrepreneurs.
If you work with both categories of clients, you will have to issue electronic invoices only to French B2B partners.
What if you run a business that serves many customers daily, does not normally issue invoices and doesn’t always know if the client is buying for personal or business purchases? The threshold of 150€ per purchase comes into play. Above 150€, an electronic invoices will be obligatory for business clients. Below, a regular receipt will still be valid, or a simplified invoice.
What are the deadlines? #
- Selecting your provider to received e-invoices from your French suppliers – September 2026.
- Issuing e-invoices for large companies (over 250 employees or 50M € annual turnover) – September 2026
- Issuing e-invoices for all other businesses and doing e-reporting – September 2027.
Will one have to pay? Which platform to choose? #
A lot of service providers use the hype to promote their proposals. Take you time to study your options and choose the most suitable solution. Remember, you can use on3 platform to receive and another one to issue your invoices. What to keep in mind:
- there are free solutions. They may have limited functionality or be less user friendly, but you will be able to continue doing business without any added charge
- If you have an accountant, it will be easier both for you and them if your solution integrates well with their software
Need more information? #
The tax website has a nice tool that will ask you a few questions about your business, and will provide you with personalised information.
